You can file bankruptcy in Massachusetts without the assistance of a lawyer.  To ensure that you obtain the debt relief you need and protect your assets to the fullest extent possible, you should retain an experienced bankruptcy attorney. There are many steps and subtle nuances that are required in order to complete the bankruptcy process. If you make a mistake, you may lose significant assets that you hoped to keep. For example, if you want to exempt real estate in Massachusetts, you must record a declaration of homestead for the property. If you do not complete this step, your home may not be exempt and may be sold in a bankruptcy. [Read more...]

Credit card companies may want you to believe that. However, most wage earners with serious debt problems are eligible to file Chapter 7 bankruptcy. An experienced Greater Boston bankruptcy lawyer can help you file for Chapter 7 bankruptcy properly, even if other lawyers have said you are ineligible. [Read more...]

More information:

I live on Cape Cod and the down economy has taken its toll on my financial state. Most of my debt is credit card debt with three different cards. I want to file chapter 7 bankruptcy but I continue to use one of the cards for essentials. Does that mean I can’t file bankruptcy until I wait a certain amount of time?

Bankruptcy Attorney Answer:

You can file for bankruptcy protection, but it is possible that some of your more recent credit card debt may be deemed non-dischargeable, meaning you will still have to pay it back. The bankruptcy code says that non-essential credit card debt to any one card company that equals or is greater than $500 and was incurred within 90 days of your bankruptcy filing is presumed to be non-dischargeable.  Also, credit card debt of ANY amount and incurred at ANY time may, in theory, be deemed non-dischargeable if the card company can show that you knew or should have known that you would have been unable to pay it back.  An experienced bankruptcy lawyer can help you effectively navigate the Chapter 7 bankruptcy process. [Read more...]

More information: I am working with my Boston bankruptcy attorney and have seen several references to “denial of discharge”. Does this just mean that the debt needs to be paid?

Bankruptcy Attorney Answer:

Generally speaking, in Massachusetts a denial of discharge means the debtor will remain liable for repaying the full amount of ALL of his debts.  A Bankruptcy Court can deny your discharge as a response to certain bad behaviors on your part, such as if you (the debtor) fail to take the required financial management course, make false statements under oath, conceal property that should have been part of the bankruptcy estate, or fail to obey a lawful order of the court.

In the instance of a specific debt, denial of discharge can mean that specific debt needs to be paid. For example, the bankruptcy court may notify you that your student loans are not dischargeable.  In that case, your bankruptcy case will move forward and all of your other debts may still be discharged.  Hiring an experienced Boston bankruptcy attorney is the prudent course of action filing bankruptcy. [Read more...]

Upon filing a Chapter 7 bankruptcy, the bankruptcy trustee can take possession of your non-exempt property and sell it to pay your creditors. However, there are many types of property that are exempt. Many people who file Chapter 7 bankruptcy have lost nothing other than their debts. [Read more...]

More information:

I live and own a business in Cambridge, Massachusetts. I filed chapter 13 bankruptcy almost a year ago and am now making payments under a payment plan. Now things aren’t going so well again and I worried I won’t be able to make the payments. So what will happen if a default on my payments under the chapter 13 plan? Are there fines or anything like that?

Bankruptcy Attorney Answer:

A large percentage of debtors drop out of their bankruptcy plan prior to discharge.  If you default on your payments under the bankruptcy plan, the bankruptcy trustee will request that the court dismiss your bankruptcy.  In that case, all of your creditors can resume their efforts to collect the money you owe, in any way allowed by the state of Massachusetts.  Do not default.  Talk to your bankruptcy attorney to see if  they can help you to seek an amendment to your chapter 13 plan.  Bankruptcy courts are more likely to allow amendments when there are dramatic changes in the debtor’s circumstances, such as a lost job.  Your bankruptcy lawyer might have other suggestions as well, such as surrendering a secured debt to reduce the payment. [Read more...]

If you file for bankruptcy, an automatic stay will go into effect immediately. This is done to protect people in debt from legal action while they get their finances back in order. An automatic stay will cease most debt-related legal action that is being taken against you. For example, it may temporarily halt utility disconnections, foreclosures, evictions, and wage garnishments. [Read more...]

Answer:
Personal bankruptcy is commenced by an individual filing Chapter 7, 11, 12 or 13. The most common is Chapter 7. The debtor is allowed to exempt certain property from liquidation by the trustee. The list of exempt property includes homesteads, household furniture and furnishings, jewelry, clothing, interests in an automobile, tools of the trade, pensions, insurance policies, a “wild-card” or “grubstake” exemption of $15,000.00, and other assets. Individual states are allowed to “opt-out” of the federal exemptions and provide their own lists. Exemptions can thus vary widely from state to state. [Read more...]

Answer:
The individual debtor usually is discharged from legal liability for his debts, and receives a “fresh start”. A discharge will be denied for improper activity, including:

• Transferring property prior to bankruptcy to defraud creditors
• Failing to list assets or debts
• Destroying financial records
• Failing to explain loss of assets
• Failing to obey court orders
• Failing to turn over records to the trustee

[Read more...]

Answer:
Certain debts are not wiped out by the filing of bankruptcy, including:

• Many taxes
• Alimony, child support and related debts
• Most educational loans
• Criminal fines, penalties, and restitution debts
• Debts incurred as the result of drunk driving
• Debts arising from fraud, theft and embezzlement
• Debts for willful and malicious acts
• Debts which are reaffirmed.

[Read more...]

Answer:
Corporate Bankruptcy is the filing of Chapter 7 or Chapter 11 by corporations and partnerships . On the filing of a Chapter 7 petition, the court appoints a trustee. The trustee’s primary duty is to sell the assets of the bankruptcy estate, and then make distributions to creditors. The trustee’s commissions and other administrative expenses are paid first, followed by payment of priority debts (often taxes), and then to general unsecured creditors on a pro rata basis.

In most Chapter 7 cases, the debtor’s business operations either had already ceased as of the filing, or stop once the case is filed. In some cases, to preserve an entity’s “going concern” value, the court permits the trustee to operate the business. In Chapter 11, on the other hand, the business typically remains in operation, with the debtor retaining control as a debtor in possession. The debtor in possession is given the same rights and duties as a trustee. The goal of the Chapter 11 is to reorganize or liquidate its assets through a court-approved plan, approved by its creditors. [Read more...]